Suppose a perfectly competitive firm has a cost function: C(Q) = 500 + 4Q + 0.05Q2 and the market price of its product is $12. What is the optimal (profit-maximizing) price for the firm to charge. Refer to the perfectly competitive firm above. What is the optimal output level for this firm to produce? Refer to the perfectly competitive firm above. What are the firm's profits/losses from producing at the optimal quantity / price combination? Refer to the perfectly competitive firm above. What are the firm's fixed costs?
